Labour to restrict non-resident purchases of homes

new-zealand-labour-party

Sun Jul 28 2013 12:00:00 GMT+1200 (New Zealand Standard Time)

Labour to restrict non-resident purchases of homes

Sunday, 28 July 2013, 10:56 am
Press Release: New Zealand Labour Party

David SHEARER
Labour Leader

28 July 2013

MEDIA STATEMENT

Labour to restrict non-resident purchases of homes

Labour will restrict the ability of non-residents to purchase New Zealand houses, as part of its comprehensive package of policies to help New Zealanders get into their first home.

“I will restore the Kiwi dream of home ownership that has slipped out of reach for tens of thousands of Kiwis. I don’t want to see our kids become a generation of renters,” says Labour Leader David Shearer.

“House prices in Auckland have risen by 28 per cent since June 2009. The problem is clear – there are just not enough affordable homes. And overseas speculators are adding to the problem.

“That’s why the next Labour government will introduce restrictions so that non-residents will not be allowed to buy any existing house, flat or apartment.

“Many other countries, including Australia, China, Singapore, the UK and Switzerland target overseas speculation in housing. New Zealand’s lack of regulation leaves the door wide open for international speculators.

“IRD records show that more than 11,000 overseas investors own properties here that they don’t live in. An estimated 2,600 homes were bought last year by offshore property speculators that had no intention of living here. That’s a big chunk, given that just 4,700 new homes were built in Auckland last year.

“This policy will reduce demand and help take some of the heat out of the market. It will put Kiwi buyers at the front of the queue.

“By itself this is not a silver bullet for housing affordability – but it is part of the solution.

“It sits alongside Labour’s KiwiBuild policy to build 100,000 affordable homes over 10 years for first time buyers, and our plan to tax property speculation. Together these policies will increase the supply of entry-level housing and reduce speculation-driven demand.

“Labour’s comprehensive housing affordability plan will mean first home buyers get a fair crack at getting into the housing market,” says David Shearer.

ENDS

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